China's export control law is now a top concern for Japanese companies
China enforced its export control law in December 2020.
This is China's countermeasure against US trade sanctions against China in the US-China trade war.
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China is considering the possibility of using Huawei as a tool to retaliate against US sanctions.
The target is an American company, not a Japanese company.
However, Japanese companies are concerned that this will be used arbitrarily.
According to the "FY2020 Questionnaire Survey on Overseas Business Development of Japanese Companies (Overseas Business Survey)" conducted by the Japan External Trade Organization (JETRO), the most affected trade policy will be "additional tariff measures in 2019." However, in 2020, "China's tightening of export controls" had the highest response rate (29.3%), which was higher than "Tightening of US export controls and investment controls" (25.9%).
A particular problem is rare earths.
This is indispensable as a permanent magnet material for hybrid cars and EVs (electric vehicles). It is also used in fluorescent lamps, light-emitting materials such as LEDs and lasers, and MRI contrast agents. It is indispensable for manufacturing smartphones and PCs. essential to modern industry.
